Peab

Through the two deals Peab will divest finished properties that are currently being managed and use the freed capital to invest in development rights for future development.

Peab has developed homes on Kvarnholmen since 2013. Sicklaön Invest AB has more than 270 zoning approved wholly owned development rights for a gross area of 26,000 m2. In addition, the company owns 50 percent of the shares in KUAB that has an ongoing zoning process for more than 120,000 m2 housing development rights. Half of them will be turned over to Peab.

Peab has been a part owner in Tornet Bostadsproduktion since 2009. The company owns and manages around 2,200 rental apartments and has some 650 rental apartments in production in a number of cities in Sweden. In its role as construction contractor Peab has delivered several housing projects to Tornet over the years. Being an owner has been advantageous and value development has been positive, which is why divestment is now generating capital gains.

"We're pleased to be able to now capitalize the value that has been built up in Tornet. Tornet has developed a good and modern group of rental apartment properties but now that the company is moving into a new phase it's natural for us to take our leave. The divestment frees capital that we're investing in Kvarnholmen where we'll become sole owners of several development rights. We have positive experience from previous projects on Kvarnholmen and a strong belief in the area. Over the coming years we expect to develop excellent homes for our customers," says Göran Linder, Business Area Manager Peab Project Development.

For further information, please contact:

Göran Linder, Business Area Manager Peab Project Development, +46 73 333 94 22

Juha Hartomaa, Head of Investor Relations Peab, +46 725 33 31 45